3 ways companies will push climate action in 2018

3 ways companies will push climate action in 2018

For corporate climate action to get stronger, countries need to take part, too.

Companies stepped up on climate change in 2017. In 2018, they need to bring countries with them.

It is fantastic that more than 300 companies are committed to set science-based targets to reduce carbon dioxide and other greenhouse gas (GHG) emissions. Hundreds of others have committed to use 100 percent renewable energy, put a price on carbon and lobby for strong climate policies.

To address climate change, however, business leaders ultimately will need more supportive policies from governments. They will need to inspire and support greater ambition in the countries where they source their materials and produce and sell their products.

Drawing on a joint playbook that the World Resources Institute (WRI) developed with U.N. Global Compact, here are three ways business leaders can inspire national climate action in 2018:

1. Show up, speak up

Between now and the next climate negotiations (Dec. 3-14), companies should showcase their support for climate action in at least two high-profile settings.

In the United States this year, for example, CEOs published letters in the Wall Street Journal and called the White House in support of the Paris Agreement. Many business leaders from around the world showed up at the global climate negotiations last month in Germany to explain why they want national and international policies and investments to advance climate change solutions. These calls for action must continue to get louder.

When, where and how might your CEO push for climate action in 2018? Circle these dates now, as they will be prime opportunities to highlight your company’s leadership this year:

Ministries will need to be in close coordination if countries are to realize the huge economic rewards of climate action.

Businesses and governments must do more to make their climate goals mutually relevant and reinforcing. When national governments explicitly reference the private sector in their climate commitments to the Paris Agreement ("nationally determined contributions" or NDCs), it helps direct climate-smart investment and corporate action. When companies articulate how their emissions-cutting efforts will support those NDCs, they encourage smarter government policy and greater ambition.

3. Meet the ministers

Next, take those fact sheets to decision-makers in relevant government departments and ministries (trade, finance, agriculture, transportation and more).

These meetings can help break down silos within and between governments, leading to a more cohesive policy framework. Ministries will need to be in close coordination if countries are to realize the huge economic rewards of climate action.

For example, according to the IFC (PDF), most countries highlight renewable energy in their NDCs, but less than half include transportation. Far fewer reference energy storage or water policy, both of which could be essential to your company's success in future growth markets. Meetings with ministers who manage these aspects of a country’s infrastructure can lead to a policy framework that is more helpful to your company’s climate goals.

A tip: if you are struggling to line up meetings with the right ministers, team up with other like-minded businesses, perhaps through trade associations or action platforms. Government ministers, who are setting priorities for economic growth, trade and other issues of national importance, value the private sector’s perspective and may be eager to meet with a group of companies that can speak to the needs of their industry.